kelli j. schutte william jewell college robbins, judge, and vohra organizational behavior 14th...

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Kelli J. Schutte William Jewell College Robbins, Judge, and Vohra Organizational Behavior 14th Edition Chapter Conflict and Negotiation 14 14-1 Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e

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Page 1: Kelli J. Schutte William Jewell College Robbins, Judge, and Vohra Organizational Behavior 14th Edition Conflict and Negotiation 14-0 Copyright © 2012 Dorling

Kelli J. SchutteWilliam Jewell College

Robbins, Judge, and Vohra

Organizational Behavior14th Edition

Chapter

Conflict and NegotiationConflict and Negotiation

14

14-1Copyright © 2012 Dorling Kindersley (India) Pvt. LtdAuthorized adaptation from the United States edition of Organizational Behavior, 14e

Page 2: Kelli J. Schutte William Jewell College Robbins, Judge, and Vohra Organizational Behavior 14th Edition Conflict and Negotiation 14-0 Copyright © 2012 Dorling

Chapter Learning ObjectivesChapter Learning Objectives

After studying this chapter, you should be able to:– Define conflict.– Differentiate between the traditional, resolution focused, and

interactionist views of conflict.– Outline the conflict process.– Define negotiation.– Contrast distributive and integrative bargaining.– Apply the five steps in the negotiation process.– Show how individual differences influence negotiations.– Assess the roles and functions of third-party negotiations.– Describe cultural differences in negotiations.

14-2Copyright © 2012 Dorling Kindersley (India) Pvt. LtdAuthorized adaptation from the United States edition of Organizational Behavior, 14e

Page 3: Kelli J. Schutte William Jewell College Robbins, Judge, and Vohra Organizational Behavior 14th Edition Conflict and Negotiation 14-0 Copyright © 2012 Dorling

Conflict DefinedConflict Defined

A process that begins when one party perceives that another party has negatively affected, or is about to negatively affect, something that the first party cares about– That point in an ongoing activity when an interaction

“crosses over” to become an interparty conflict Encompasses a wide range of conflicts that people

experience in organizations– Incompatibility of goals– Differences over interpretations of facts– Disagreements based on behavioral expectations

14-3Copyright © 2012 Dorling Kindersley (India) Pvt. LtdAuthorized adaptation from the United States edition of Organizational Behavior, 14e

Page 4: Kelli J. Schutte William Jewell College Robbins, Judge, and Vohra Organizational Behavior 14th Edition Conflict and Negotiation 14-0 Copyright © 2012 Dorling

Transitions in Conflict ThoughtTransitions in Conflict Thought

Traditional View of Conflict

– The belief that all conflict is harmful and must be avoided

– Prevalent view in the 1930s-1940s

Conflict resulted from:

– Poor communication

– Lack of openness

– Failure to respond to employee needs

14-4Copyright © 2012 Dorling Kindersley (India) Pvt. LtdAuthorized adaptation from the United States edition of Organizational Behavior, 14e

Page 5: Kelli J. Schutte William Jewell College Robbins, Judge, and Vohra Organizational Behavior 14th Edition Conflict and Negotiation 14-0 Copyright © 2012 Dorling

Continued Transitions in Conflict ThoughtContinued Transitions in Conflict Thought

Resolution Focused View of Conflict– The belief that conflict is a natural and inevitable outcome in

any group– Focuses on productive conflict resolution

Interactionist View of Conflict– The belief that conflict is not only a positive force in a group

but that it is absolutely necessary for a group to perform effectively

– Current view

14-5Copyright © 2012 Dorling Kindersley (India) Pvt. LtdAuthorized adaptation from the United States edition of Organizational Behavior, 14e

Page 6: Kelli J. Schutte William Jewell College Robbins, Judge, and Vohra Organizational Behavior 14th Edition Conflict and Negotiation 14-0 Copyright © 2012 Dorling

Forms of Interactionist ConflictForms of Interactionist Conflict

Functional Conflict• Conflict that supports the goals of the group and improves its

performance

Dysfunctional Conflict• Conflict that hinders group performance

14-6Copyright © 2012 Dorling Kindersley (India) Pvt. LtdAuthorized adaptation from the United States edition of Organizational Behavior, 14e

Page 7: Kelli J. Schutte William Jewell College Robbins, Judge, and Vohra Organizational Behavior 14th Edition Conflict and Negotiation 14-0 Copyright © 2012 Dorling

Types of Interactionist ConflictTypes of Interactionist Conflict

Task Conflict– Conflicts over content and goals of the work– Low-to-moderate levels of this type are

FUNCTIONAL

Relationship Conflict– Conflict based on interpersonal relationships– Almost always DYSFUNCTIONAL

Process Conflict– Conflict over how work gets done– Low levels of this type are FUNCTIONAL

14-7Copyright © 2012 Dorling Kindersley (India) Pvt. LtdAuthorized adaptation from the United States edition of Organizational Behavior, 14e

Page 8: Kelli J. Schutte William Jewell College Robbins, Judge, and Vohra Organizational Behavior 14th Edition Conflict and Negotiation 14-0 Copyright © 2012 Dorling

The Conflict ProcessThe Conflict Process

We will focus on each step in a moment…

14-8

E X H I B I T 14-1E X H I B I T 14-1

Copyright © 2012 Dorling Kindersley (India) Pvt. LtdAuthorized adaptation from the United States edition of Organizational Behavior, 14e

Page 9: Kelli J. Schutte William Jewell College Robbins, Judge, and Vohra Organizational Behavior 14th Edition Conflict and Negotiation 14-0 Copyright © 2012 Dorling

Stage I: Potential Opposition or IncompatibilityStage I: Potential Opposition or Incompatibility

Communication– Semantic difficulties, misunderstandings, over communication and

“noise”

Structure– Size and specialization of jobs– Jurisdictional clarity/ambiguity– Member/goal incompatibility– Leadership styles (close or participative)– Reward systems (win-lose)– Dependence/interdependence of groups

Personal Variables– Differing individual value systems– Personality types

14-9Copyright © 2012 Dorling Kindersley (India) Pvt. LtdAuthorized adaptation from the United States edition of Organizational Behavior, 14e

Page 10: Kelli J. Schutte William Jewell College Robbins, Judge, and Vohra Organizational Behavior 14th Edition Conflict and Negotiation 14-0 Copyright © 2012 Dorling

Stage II: Cognition and PersonalizationStage II: Cognition and Personalization

Important stage for two reasons:

1. Conflict is defined • Perceived Conflict

– Awareness by one or more parties of the existence of conditions that create opportunities for conflict to arise

2. Emotions are expressed that have a strong impact on the eventual outcome• Felt Conflict

– Emotional involvement in a conflict creating anxiety, tenseness, frustration, or hostility

14-10Copyright © 2012 Dorling Kindersley (India) Pvt. LtdAuthorized adaptation from the United States edition of Organizational Behavior, 14e

Page 11: Kelli J. Schutte William Jewell College Robbins, Judge, and Vohra Organizational Behavior 14th Edition Conflict and Negotiation 14-0 Copyright © 2012 Dorling

Stage III: IntentionsStage III: Intentions

Intentions– Decisions to act in a given way– Note: behavior does not always accurately reflect intent

Dimensions of conflict-handling intentions:– Cooperativeness

• Attempting to satisfy the other party’sconcerns

– Assertiveness• Attempting to satisfy

one’s own concerns

14-11

E X H I B I T 14-2E X H I B I T 14-2

Source: K. Thomas, “Conflict and Negotiation Processes in Organizations,” in M.D. Dunnette and L.M. Hough (eds.), Handbook of Industrial and Organizational Psychology, 2nd ed., vol. 3 (Palo Alto, CA: Consulting Psychologists Press, 1992), p. 668. Arrows added. Used with permission.

Copyright © 2012 Dorling Kindersley (India) Pvt. LtdAuthorized adaptation from the United States edition of Organizational Behavior, 14e

Page 12: Kelli J. Schutte William Jewell College Robbins, Judge, and Vohra Organizational Behavior 14th Edition Conflict and Negotiation 14-0 Copyright © 2012 Dorling

Stage IV: BehaviorStage IV: Behavior

Conflict Management

– The use of resolution and stimulation techniques to achieve the desired level of conflict

Conflict-Intensity Continuum

14-12

E X H I B I T 14-3E X H I B I T 14-3

Source: Based on S.P. Robbins, Managing Organizational Conflict: A Nontraditional Approach (Upper Saddle River, NJ: Prentice Hall, 1974), pp. 93–97; and F. Glasi, “The Process of Conflict Escalation and the Roles of Third Parties,” in G.B.J. Bomers and R. Peterson (eds.), Conflict Management and Industrial Relations (Boston: Kluwer-Nijhoff, 1982), pp. 119–40.

Copyright © 2012 Dorling Kindersley (India) Pvt. LtdAuthorized adaptation from the United States edition of Organizational Behavior, 14e

Page 13: Kelli J. Schutte William Jewell College Robbins, Judge, and Vohra Organizational Behavior 14th Edition Conflict and Negotiation 14-0 Copyright © 2012 Dorling

Conflict Management TechniquesConflict Management Techniques Conflict Resolution

Techniques– Problem solving– Superordinate goals– Expansion of resources– Avoidance– Smoothing– Compromise– Authoritative command– Altering the human

variable– Altering the structural

variables

Conflict Stimulation Techniques

– Bringing in outsiders– Communication– Restructuring the

organization– Appointing a devil’s

advocate

14-13

SEE E X H I B I T 14-4SEE E X H I B I T 14-4

Source: Based on S. P. Robbins, Managing Organizational Conflict: A Nontraditional Approach (Upper Saddle River, NJ: Prentice Hall, 1974), pp. 59–89

Copyright © 2012 Dorling Kindersley (India) Pvt. LtdAuthorized adaptation from the United States edition of Organizational Behavior, 14e

Page 14: Kelli J. Schutte William Jewell College Robbins, Judge, and Vohra Organizational Behavior 14th Edition Conflict and Negotiation 14-0 Copyright © 2012 Dorling

Stage V: OutcomesStage V: Outcomes Functional

– Increased group performance

– Improved quality of decisions

– Stimulation of creativity and innovation

– Encouragement of interest and curiosity

– Provision of a medium for problem solving

– Creation of an environment for self-evaluation and change

Dysfunctional– Development of discontent

– Reduced group effectiveness

– Retarded communication

– Reduced group cohesiveness

– Infighting among group members overcomes group goals

Managing Functional Conflict– Reward dissent and punish

conflict avoiders

14-14Copyright © 2012 Dorling Kindersley (India) Pvt. LtdAuthorized adaptation from the United States edition of Organizational Behavior, 14e

Page 15: Kelli J. Schutte William Jewell College Robbins, Judge, and Vohra Organizational Behavior 14th Edition Conflict and Negotiation 14-0 Copyright © 2012 Dorling

NegotiationNegotiation

Negotiation (Bargaining)– A process in which two or more parties exchange goods or

services and attempt to agree on the exchange rate for them Two General Approaches:

– Distributive Bargaining• Negotiation that seeks to divide up a fixed amount of

resources; a win-lose situation

– Integrative Bargaining• Negotiation that seeks one or more settlements that can create

a win-win solution

14-15Copyright © 2012 Dorling Kindersley (India) Pvt. LtdAuthorized adaptation from the United States edition of Organizational Behavior, 14e

Page 16: Kelli J. Schutte William Jewell College Robbins, Judge, and Vohra Organizational Behavior 14th Edition Conflict and Negotiation 14-0 Copyright © 2012 Dorling

Distributive versus Integrative BargainingDistributive versus Integrative Bargaining

Bargaining Characteristic Distributive Bargaining Integrative Bargaining

Goal Get all the pie you can Expand the pie

Motivation Win-Lose Win-Win

Focus Positions Interests

Information Sharing Low High

Duration of Relationships Short-Term Long-Term

14-16

SEE E X H I B I T 14-5SEE E X H I B I T 14-5

Mine

Yours

MineYoursDistributive

Integrative

Source: Based on R. J. Lewicki and J. A. Litterer, Negotiation (Homewood, IL: Irwin, 1985), p. 280.

Copyright © 2012 Dorling Kindersley (India) Pvt. LtdAuthorized adaptation from the United States edition of Organizational Behavior, 14e

Page 17: Kelli J. Schutte William Jewell College Robbins, Judge, and Vohra Organizational Behavior 14th Edition Conflict and Negotiation 14-0 Copyright © 2012 Dorling

The Negotiation ProcessThe Negotiation Process

BATNA

– The Best Alternative To a Negotiated Agreement

– The lowest acceptable value (outcome) to an individual for a negotiated agreement

14-17

E X H I B I T 14-7E X H I B I T 14-7

Copyright © 2012 Dorling Kindersley (India) Pvt. LtdAuthorized adaptation from the United States edition of Organizational Behavior, 14e

Page 18: Kelli J. Schutte William Jewell College Robbins, Judge, and Vohra Organizational Behavior 14th Edition Conflict and Negotiation 14-0 Copyright © 2012 Dorling

Individual Differences in Negotiation EffectivenessIndividual Differences in Negotiation Effectiveness

Personality Traits– Extroverts and agreeable people are weaker at distributive

negotiation; disagreeable introverts are best– Intelligence is a weak indicator of effectiveness

Mood and Emotion– Ability to show anger helps in distributive bargaining– Positive moods and emotions help integrative bargaining

Gender– Men and women negotiate the same way, but may

experience different outcomes

14-18Copyright © 2012 Dorling Kindersley (India) Pvt. LtdAuthorized adaptation from the United States edition of Organizational Behavior, 14e

Page 19: Kelli J. Schutte William Jewell College Robbins, Judge, and Vohra Organizational Behavior 14th Edition Conflict and Negotiation 14-0 Copyright © 2012 Dorling

Third-Party NegotiationsThird-Party Negotiations Four Basic Third-Party Roles

– Mediator• A neutral third party who facilitates a negotiated solution by using

reasoning, persuasion, and suggestions for alternatives

– Arbitrator• A third party to a negotiation who has the authority to dictate an

agreement.

– Conciliator• A trusted third party who provides an informal communication

link between the negotiator and the opponent

– Consultant• An impartial third party, skilled in conflict management, who

attempts to facilitate creative problem solving through communication and analysis

14-19Copyright © 2012 Dorling Kindersley (India) Pvt. LtdAuthorized adaptation from the United States edition of Organizational Behavior, 14e

Page 20: Kelli J. Schutte William Jewell College Robbins, Judge, and Vohra Organizational Behavior 14th Edition Conflict and Negotiation 14-0 Copyright © 2012 Dorling

Global ImplicationsGlobal Implications

Conflict and Culture– Indian and French managers view conflict differently– Indian managers are more likely to use accommodation and

avoidance while French managers are likely to use competing tactics.

Cultural Differences in Negotiations– Multiple cross-cultural studies on negotiation styles, for

instance:• American negotiators are more likely than Japanese bargainers

to make a first offer• North Americans use facts to persuade; Arabs use emotion; and

Russians use asserted ideals• Brazilians say “no” more often than Americans or Japanese

14-20Copyright © 2012 Dorling Kindersley (India) Pvt. LtdAuthorized adaptation from the United States edition of Organizational Behavior, 14e

Page 21: Kelli J. Schutte William Jewell College Robbins, Judge, and Vohra Organizational Behavior 14th Edition Conflict and Negotiation 14-0 Copyright © 2012 Dorling

Summary and Managerial ImplicationsSummary and Managerial Implications Conflict can be

constructive or destructive

Reduce excessive conflict by using:– Competition– Collaboration– Avoidance– Accommodation– Compromise

Integrative negotiation is a better long-term method

14-21

E X H I B I T 14-8E X H I B I T 14-8

Copyright © 2012 Dorling Kindersley (India) Pvt. LtdAuthorized adaptation from the United States edition of Organizational Behavior, 14e

Page 22: Kelli J. Schutte William Jewell College Robbins, Judge, and Vohra Organizational Behavior 14th Edition Conflict and Negotiation 14-0 Copyright © 2012 Dorling

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any

means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the

United States of America.

Copyright ©2011 Pearson Education, Inc.  Publishing as Prentice Hall

14-22Copyright © 2012 Dorling Kindersley (India) Pvt. LtdAuthorized adaptation from the United States edition of Organizational Behavior, 14e